Suppose that real interest rates in the U.S. rise relative to real interest rates in other countries. This increase would make foreigners
a. more willing to purchase U.S. bonds, so U.S. net capital outflow would fall.
b. more willing to purchase U.S. bonds, so U.S. net capital outflow would rise.
c. less willing to purchase U.S. bonds, so U.S. net capital outflow would fall.
d. less willing to purchase U.S. bonds, so U.S. net capital outflow would rise.
a
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Refer to Table 4-4. Suppose that the quantity of labor supplied decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.00; Q = 330,000 B) W = $8.00; Q = 390,000 C) W = $10.00; Q = 350,000 D) W = $9.50; Q = 370,000
Refer to Figure 13-11. The firm represented in the diagram
A) makes zero economic profit. B) should exit the industry. C) makes zero accounting profit. D) should expand its output to take advantage of economies of scale.